The AUD to FJD exchange rate currently exhibits a bullish bias.
Key drivers include the expected tightening of monetary policy by the Reserve Bank of Australia (RBA), with interest rates projected to rise, contrasting with the Reserve Bank of Fiji's stable rate at 0.25%. Additionally, the positive economic outlook for Australia, supported by a hawkish stance from the RBA, contrasts with Fiji's revised growth forecast, which has been downgraded to 2.6%, impacted by lower export revenues and tourism.
In the near term, the AUD to FJD is anticipated to trade within a stable range, above recent averages but not exceeding substantial highs. Upside risks include a surge in commodity prices, which would further bolster the AUD, while downside risks could stem from intensified global uncertainties affecting investor sentiment and demand for riskier currencies like the AUD.
Monitoring these factors will be crucial for forecasting movements in the AUD to FJD exchange rate.